The dwindling supply of new units and the price cuts in the Hollywood/Hallandale Beach submarket within Southeast Broward County have led to a 22 percent increase for the first nine months of 2011 in condo resales for the area.
Between January and September of 2011, according to CondoVultures.com, buyers in the Hollywood/Hallandale Beach submarket acquired an average of almost 150 units each month. The same span in 2010 saw around 120 units sold, on average, for each month.
“Buyers are increasingly chasing condo resales in the coastal Hollywood/Hallandale Beach market as nearly all of the new product created during the boom–and subsequently discounted from the peak–has already been absorbed,” said Peter Zalewski, a principal with the real estate consultancy Condo Vultures, LLC. “With the new product sold, buyers are focusing less on condos as second homes and more on units that can be rented for amounts that outpace the monthly expenses. This strict investor mentality has prompted many buyers to acquire older product that is in need refurbishment but is priced attractively.”
The median resale price for a condo currently in the market was $139 per square foot for the first nine months of this year. In 2010, this figure was $144 per square foot, in 2009 the figure was $150 per square foot and in 2008 it was $192 per square foot. In the last year of the real estate boom, 2006, the median condo resale price was up to $287 per square foot.
If the current pace continues at the pace it has set for the year, there is only six months’ worth of condo resale inventory left in the coastal Hollywood/Hallandale Beach submarket. Currently, there are over 900 condos listed for resale prices under $200 per square foot in this area, with foreclosures and short-sales accounting for approximately 15 percent of these.
Renters are currently leasing an average of 100 units at a median price of $1.17 per square foot in the Hollywood/Hallandale Beach area. This is an increase from the average 93 units which were leased at a median price of $1.11 per square foot last year.